【Global Network Technology Report】Huawei held the 14th Global Analyst Conference in Shenzhen on the theme of “Shaping the Cloud Age and Commencing the Road to Digitalization” today. Huawei and more than 500 industry analysts, communications, Internet, financial and other industry opinion leaders and media from around the world work together to discuss the digital development of the country, industry, and companies under the trend of the cloud era. Huawei shared the corporate strategy, market progress, and innovation in the process of building a better connected world. At the same time, the conference also covered cloud services, video, Internet of Things, artificial intelligence, digital transformation, and the latest trends of Huawei. Judgments, business practices, solutions and technological innovations. In this morning’s conference, Xu Wenwei, Huawei’s Managing Director and President of Strategic Marketing, gave a full demonstration of Huawei’s overall strategy, its own positioning, and its current detailed strategy. Let's take a look at some of the highlights that Xu Wenwei brought in his speech.

I. Reaffirming Huawei's Position and Strategy

Xu Wenwei reiterated that Huawei's position for enterprise customers is to become the enabler and the best partner for the digital transformation of the industry, assisting the digital transformation of customers and achieving commercial success.

Strategically, Huawei adheres to “platform + ecology” and builds a cloud, management, and collaboration platform; it builds an open, cooperative, and win-win ecosystem.

In order to promote the implementation of the "platform" and "ecology" strategies, Huawei plans to invest $200 million to build 15 new OpenLabs in the next three years, and the number of OpenLabs worldwide will reach 20.

In a few simple words, Xu Wenwei clearly explained Huawei's core strategy and connotation in the battle of the cloud platform.

Second, Opportunities and Opportunities: Digitalization Brings ICT Opportunities, and Cloud is the Key Engine

In his speech, Xu Wenwei spent more time explaining the current state of the industry. Huawei's strategy and direction are based on what kind of digital outlets.

Xu Wenwei started from the beginning with regard to the transition of digital to life. “In Shenzhen, we deeply feel that basically we don’t need to bring a wallet to go out. A mobile phone can make all the payments. In New York, people can also find nearby mobile phones. Sharing cars; in Munich, the automobile production system has been deeply integrated with the information system and automated throughout. In Jiaxing, Zhejiang, the government adopted cloud computing to open up the inter-departmental administrative approval process, and the people went to the government to run only once.” All sectors and industries have entered the critical moment of digital transformation, and industries such as finance, transportation, manufacturing, and government affairs are facing industrial upgrading.

Xu Wenwei compares the importance of electricity with the digitization of today. He said that a hundred years ago, all walks of life in the United States launched a vigorous electrification process. The amount of power generation increased by 24 times from 1900 to 1930, and the amount of power generation was called the "economic thermometer." He believes that today's digital industry, ICT industry ushered in a huge opportunity today, is bound to bring the outbreak of data volume growth.

Huawei estimates that by 2025, the amount of data generated and stored globally will reach 180ZB, a 150-fold increase over 2010. The digitization of various industries contains unlimited digital dividends, which not only provides new business opportunities and efficiency improvements for millions of companies, but also puts forward more and higher requirements for the digital infrastructure of “end, management, and cloud”. Bring huge opportunities for development in the ICT industry.

In this wave of digitalization, one of the key indicators should demonstrate the inevitable direction of Huawei's strategy. According to the correlation analysis between the GCI indicators, it is found that cloud is one of the key engines: When the fixed broadband penetration rates reach 10% and 35%, respectively, there will be two distinct upward turning points in the clouding rate; once the clouding rate When it reaches 3%, big data analysis and IOT investment will be greatly improved.

In addition, there are some other interesting data. First, the GCI 2017 study shows that the global digital economy is accelerating and the overall GCI score has increased by 4 percentage points compared to 2015. The report shows that for every additional dollar of ICT investment, it will receive an additional US$3 return on GDP, and ICT will become an important driver of economic growth. Second, with the transformation of ICTs from supporting systems to production systems and decision-making systems, in addition to significantly improving corporate efficiency and innovation levels, Huawei predicts that for every additional dollar ICT investment by 2025, it will receive an additional US$5 in GDP return. On the other hand, the disequilibrium in the level of digitized development in different countries has continued to expand, presenting the “Matthew effect,” and countries in the lead stage are improving faster and faster. This means that countries in their infancy and acceleration phase will be able to quickly promote the development of their own digital economy if they increase their investment in cloud computing while building broadband.

Third, plans to use 3 to 5 years, first realize digital from their own

Huawei plans to create digital Huawei in 3 to 5 years. Xu Wenwei said that Huawei must first realize the digitization of its key business processes in order to better help the digital transformation of various industries.

Cloud services have become the basis for the digital transformation of operators and all walks of life. Huawei responded to this trend and established Cloud BU to invest in an open public cloud platform. Taking Huawei's R&D Cloud as an example, Huawei relied on the global data center to build 100,000 desktop clouds and 1.1 million virtual machines, and realized code clouds and cloud operations, shortening research and development operations time by 50%. The efficiency is increased by about 1 times.

Fourth, help operators digitize and open up new markets

Huawei helps operators develop video services and seizes the trillion-dollar video market. At the same time, it also enables the digitalization of the vertical industry by means of cloud services, providing computing, storage, networking, corporate communications, and corporate communications to corporate and government customers. Services such as connectivity and IoT will participate in the $15 trillion industry digital market over the next decade. Take Deutsche Telekom as an example to develop new services such as cloud, video, and IoT. For consumers, Deutsche Telekom has launched NGTV. For corporate customers, Deutsche Telekom has launched OTC (Open Telecom Cloud) and has become a cloud service provider for leading companies such as Mercedes-Benz, Volkswagen, and Bosch.

V. Enhance EM market investment to help operators improve ROI

Huawei believes that there is still a huge demographic dividend in the EM market: The EM market has a total population of about 4.7 billion people, 3 billion people do not have access to the Internet, 800 million households do not have access to broadband, and the basic needs of communications are far from being met.

The main obstacle to the current development of the EM market is the low return on investment (ROI). CAPEX and OPEX remain high. Huawei has set up a business solutions department for the EM market. For example, through the FTTx alliance, site alliances, etc. to solve the problem of high cost of resources. Reduce network construction costs by freeing technology innovations such as simple station and Mini OLT. Quickly provide home broadband through solutions such as WTTX. Through the development of video and other services, improve the ARPU value.

Huawei shares its global excellent practices and experiences with operators, helping operators improve their capabilities, increase service delivery speeds, and reduce operating and maintenance costs. In some scenarios, the return on investment (ROI) cycle has been reduced from 9 years to about 4 years. Huawei expects that by 2025, EM will add 2 billion mobile internet connections and add 500 million home broadband users.

VI. Relying on industry alliances in vertical industries to build a new ecology for digital transformation in the industry

Huawei will continue to increase its construction and investment in industrial alliances, business alliances, open source communities, developer platforms and other areas, and achieve win-win results with the ecosystem.

summary:

Through the sharing of Xu Wenwei, we can clearly see Huawei's strategy and direction in the digital transformation: Focusing on building Huawei's digitalization for three to five years, and assisting operators in developing video services. While opening up new markets, it also strengthens emerging markets. The investment in the market aims to increase the return on investment and continue to increase its influence in the alliance of producers.

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October 31, 2024